Shockingly warm weather is expected this week, but that hasn’t prevented price spikes in power. Alberta power
averaged over $100/MWh on two different days this week as there was more than one thermal outage
decreasing the supply cushion and driving prices up. The week averaged 65% higher at $83.66/MWh. 20% of the
hours this week settled above $100/MWh. Forwards are also trading up ~$0.50/MWh which may be a response to
the higher settles.
AECO gas prices averaged $1.72/GJ this week, which was surprisingly a 6% decrease week over week. Weekend
daily settles were significantly above $2.00/GJ with decreased transport capacity on the Enbridge’s Westcoast
pipeline in BC. An unexplained explosion near Price George last week caused the shutdown of two pipelines, one
as a precaution. The second smaller pipeline has since reopened to 80% capacity, but most of BC has been asked
to cut back on consumption. Large industrial consumers will be the first to be curtailed if required to provide basic
heat to residential customers.